Boeing Faces Challenging Month with Sluggish Sales and Competitor Gains

Boeing, one of the leading aircraft manufacturers, faced a challenging month in May as the company received orders for only four new planes, with none being for its popular 737 Max model. This marks the second consecutive month without any orders for the 737 Max, following an incident in January where a side panel blew out during a flight.

Comparatively, Boeing’s competitor, Airbus, reported net orders for 15 planes in May, despite 12 cancellations. Additionally, Aerolineas Argentinas canceled an order for a single Max jet, resulting in Boeing’s net sales for the month totaling three.

As a result of the disappointing sales figures, The Boeing Co. saw a 3% drop in its shares during afternoon trading. This decline follows a similar trend from April, where Boeing only reported seven sales, none of which were for the Max model.

Boeing is hopeful that the sluggish order pace is temporary, with expectations for increased sales announcements at the upcoming Farnborough International Airshow. However, the company is facing challenges, including production caps by the Federal Aviation Administration on 737s, allegations of shortcuts in production, and reports of falsified inspection records on some 787 Dreamliner jets.

In May, Boeing delivered a total of 24 jetliners, including 19 Max jets. Ryanair from Ireland received four jets, while Alaska Airlines took three. In comparison, Airbus delivered 53 planes in the same month.

Despite recent sales setbacks, Boeing maintains a substantial backlog of over 5,600 orders, demonstrating continued demand for its aircraft. The company remains committed to delivering quality products and services to its customers.

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